9 Ways to Scale Amazon FBA Businesses Omer Riaz March 9, 2022

9 Ways to Scale Amazon FBA Businesses

amazon fba scale

If you are thinking of up your scale Amazon fba business, you might require putting in a lot more effort than you think. There will be a need to invest a lot of time, effort, and money to professionally scale the Amazon FBA business. According to SellerApp, over 73% of Amazon sellers use the FBA account to sell, and they make a revenue roughly from $26,000 to $810,000 on an annual basis. 85% of these sellers have a profitable business. However, scaling up is not specific to increasing the revenue and sales of the product; rather, your brand will achieve much more.

Almost all the FBA sellers are looking for ways to boost the performance of their business and achieve a high growth rate. Improving strategies to scale the company is important as it can help the business face a high growth level. In this case, there are many ways to scale up an Amazon FBA business. You can read the nine best ways to scale a business below.

9 ways to professionally scale Amazon FBA business

1. Optimize your product listing

Optimizing the product listing is one of the most common ways to scale the Amazon FBA business. This strategy can help increase the product’s exposure to customers on the search engine. The company can optimize the product listing by updating the title, descriptions, images, pricing, keywords, features, etc. If you plan to hire an agency to optimize your product listing, you should know that it can charge up to $99 to $50,000 for optimizing 1 to 25 products. The estimate for more product ranges is below.

scale Amazon FBA business

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2. Use professional tools

Some people tend to waste their time and energy on Amazon by in-depth research. There is a need to understand that many professional tools are present to manage SEO, product research, advertising, etc., for in-depth information. A typical example is an Amazon pricing tool that helps control the pricing by comparing it with competitors. In this way, one can save a lot of time investing in the business by avoiding researching.

scale Amazon FBA business

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These tools can help get quick results and are void of any mistakes or human errors, so they are more important to use. They might also be more useful to provide insights regarding keywords that might not be identified by the seller otherwise.

3. Use paid advertising to scale Amazon FBA business

.There is also a need to use tactics to increase the conversion rate of the audience to scale the Amazon FBA business. One might not achieve that with the help of a single strategy like PPC. There will be a need to leverage other platforms like social media, which can help in bringing the traffic to your Amazon account. You will need to invest money in paid advertising rather than solely boost your organic reach with whichever platform you use.

According to Statista, the marketing spending reached 22 billion U.S. dollars in the fiscal year of 2020 despite the pandemic. The primary advertising channels were online advertising using third-party customer referrals, social media, sponsored search, and other forms of online advertising whose cost was 10.9 billion U.S. dollars.

scale Amazon FBA business

Statista

It means that Amazon sellers are going out of the way to explore options for selling their products online. It is undoubtedly due to the benefits associated with paid advertising which can help in boosting the product reach.

4. Use a combination of business models.

There are various business models that one can follow while operating as an Amazon FBA business. You might currently be using the private label business model, which has much more limitations in terms of growth. You can expand your business easily with the horizontal integration in which you can get more forward or backward along the business line for expansion.

In the backward integration, one can start selling as a whole seller and provide supplies on Amazon for various businesses. You can also offer the services like Amazon affiliate marketing, dropshipping, and other related services where you can seek commission or service charges. The forward integration can include opening a traditional brick and motor store, which can help increase brand awareness. To be concise, the more you expand your business offerings, the greater brand awareness will help in scaling your Amazon FBA as customers will recognize you.

5. Deploy Amazon arbitrage

Amazon arbitrage is the product sourcing in which a business can buy an item from one place and sell it at a higher price. Consider FBA business which purchased a pack of 10 t-shirts at the cost of 5 dollars each at a 50% discount; the seller can now sell this t-shirt at a double price on the FBA account. However, there can be issues related to taxes, pricing, or approvals in this case while handing the arbitrage products. Still, it can be considered one of the best ways to scale Amazon FBA business due to its highly profitable model.

6. Sell a diversified range of products.

Having a diversified range of products can help gain a competitive advantage by offering more than your competitors in the market. You can offer as many ranges of products on Amazon as you want. It would help if you still used a smart strategy to include those products in the product portfolio that can be profitable.

As per February 2019 on Statista, it was found that 44% of U.S. shoppers are interested in purchasing electronic products. The majority of them are also interested in apparel, footwear, jewelry, home, and kitchen goods, etc. You can find out which product is most sold in your marketplace so that you can add valuable products to your portfolio. In this way, customers will visit your account more frequently as they expect to get what they want.

7. Sell in multiple marketplaces.

If you are trying to expand your business by staying in a single marketplace, you limit your business’s scope. One best way to grow your business is to reach the overseas market to gain the opportunity to increase your customer base. In 2021, Amazon laid foot in 85 more countries to sell the products to the customers. However, the top market is still the United States, with the highest sales of 386 billion U.S. in 2020 as per Statista.

If you enter the new marketplaces, it will provide value to your brand by increasing brand recognition worldwide. It can help improve the image that you operate as a global brand which can build customer perception that you are a large multinational with high-quality products. In this way, you can scale the Amazon FBA business with a high level of growth.

scale Amazon FBA business

Statista

Other than the USA, the top-selling markets are Germany, the United Kingdom, and Japan, which have the highest sales on Amazon. These markets can prove less risky and add profits to your business.

8. Use a multi-channel strategy

If you are interested in scaling the Amazon FBA business and increasing the recognition of your brand, you might also want to consider selling on multiple channels. One way to do that is by using the e-commerce platform to sell your product. According to eMarketer, worldwide e-commerce sales are expected to reach $7.385 trillion by 2025, which will make up 24.5% of the retail sales. This means that using the e-commerce website will become one of the most important tools for business growth. An easy way to build a website can be WordPress, Wix, or Shopify.

You can also consider selling on social media like Instagram and Facebook, becoming popular sales channels. According to Statista, the market leader of social networks is Facebook, with 2.89 billion registered accounts. Instagram has 1.393 billion active users monthly. This means that there is a high potential of selling on these platforms, so they need to be used by Amazon sellers.

scale Amazon FBA business

Statista

Other online marketplaces like eBay, Etsy, etc., are competitors of Amazon, but they can help increase your business scope. Therefore, these channels should also be considered to scale Amazon’s FBA business.

9. Strengthen your keywords

One important thing that needs to be considered is the ranking of your products on multiple keywords, which can help increase the visibility of your product. More visibility can improve conversations and maximize the sales of your brand. This is why keywords are one of the most significant parts of marketing on Amazon.

In conclusion, scaling the Amazon FBA account might not be a simple task, but these are most of the easiest ways to bring your brand among the top sellers on Amazon. These are professional ways to scale up your business, enhance your image, and build brand recognition. You should invest your time in these strategies to experience smooth growth in the future. These strategies for scaling the Amazon FBA business account will add value to your business development and growth.